My First Reaction on BUDGET 2014 The increase in basic exemption limit on personal taxation by Rs.50000/= and further increase in 80C limit by Rs.50000/= is indeed welcome changes. Which is further sweetened by increasing interest rebate on self occupied properties from Rs. 150000/= to Rs.200000/= Barring these three , there is no relief to small tax payers in budget. The need of the hour is to increase the interest rebate on SOP with out any upper limit in line with rented properties where there is no limit. So if you buy house for self occupation this rebate now is Rs.200000/= and if you buy house for renting this rebate is available without any limit. What a discrimination. On PPF front which is the best scheme to invest for middle class people- though investment limit is increased to Rs.1.5 lakhs ,the account opening of Minors should have been permitted with interest. This would have given middle class person to save for their children and on the other hand long terms funds are made available to Government for development purposes. The aam admi is very much affected by service tax. Now with service tax on every services , it has added to the cost of living significantly. This budget has brought some more services in net by pruning the exemption and negative service list. Further the basic exemption limit for service tax should have been increased to Rs. 20 lakhs in line with inflation. This would have been reduced the burden on small service tax providers. And on the contrary FM has done excellent job for Foreign Companies/ Multi National Companies by introducing changes in Transfer Pricing Regime and retrospective taxation ( the Vodafone case). He has done his every bit to resolve their disputes with the current Taxation regime.
Posted on: Thu, 10 Jul 2014 13:46:43 +0000
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